The board of directors of Sheen Tai Holdings Group Company Limited informed the shareholders of the Company and potential investors that, based on the Company's preliminary review of the latest unaudited consolidated management accounts of the Group, it is expected that there will be a significant decline of the Group's profit after tax for the six months ended June 30, 2016 as compared with the corresponding period of 2015. Such expected decrease in profit after tax was mainly due to the one-off and non-recurrent gain on the disposal of Jiangsu Shuntai Packaging & Printing Science Technology Co. Ltd., a then subsidiary of the Company, during the six months ended 30 June 2015 and the absence of such disposal and one-off gain during the six months ended 30 June 2016.